Life Insurance pays out on the policyholder’s death, providing loved ones with a cash lump sum so they can cover any financial obligations that are left behind.
There are a few different types cover you could consider, which is where getting Life Insurance advice is so valuable.
There are four main types of Life Insurance:
If you’re wondering whether you need Life Insurance, put yourself or your family in some of the common scenarios below and ask yourself how you’d cope if it happened to you.
The cost of Life Insurance depends largely on one major factor: how much you’re going to insure yourself for.
This will be different for everyone and will depend on your needs, the type of policy you’re taking out and any liabilities you’re looking to cover.
The more you want to insure yourself for the higher the cost of premiums.
Other factors that will influence the cost of Life Insurance are less in your control. While you can opt for a lower benefit to reduce the cost of cover, your Life Insurance premiums are based on factors that are far harder, if not impossible, to change. These include:
Based on the latest government life expectancy data, Drewberry’s Life Expectancy Calculator works out the risk of death of the average person over a set period. Below is the risk of death in the next 20 years for a male of three different ages:
25 Years Old
35 Years Old
45 Years Old
1 in 40
1 in 20
1 in 9
As you can see, the risk of you passing away during a policy’s term increases significantly as you age, which is why Life Insurance costs more the older you are.
Given this, it can be be beneficial to take out cover when you’re young and healthy to lock in cheaper premiums.
Independent Protection Expert at Drewberry
To set up a Life Insurance policy, the first step is to research the whole UK market to compare policies and work out which one is best for you.
Only once you’re armed with all of the details from the leading insurance providers can you make a decision on the best policy for your needs.
Everyone is medically underwritten for Life Insurance. This means that, on application, you’ll be asked a series of medical questions to determine your health and the level of risk you present to the insurer, which will ultimately be translated into the cost of your premium.
Sometimes, insurers require further medical evidence than just your disclosures on the application, which may be as a result of:
Life insurers have set thresholds, or ‘triggers’, above which further medical evidence will be required. Medical evidence allows an insurer to better work out what the premium should be and assess the risk your pose accordingly.
Unfortunately, there’s no easy answer to whether the insurer will need further medical evidence.
This is because a younger person can apply for a higher benefit without the insurer needing medical evidence, whereas an older person applying for the same benefit could need a medical.
The younger person represents less of a risk to the insurer and the insurer is therefore willing to cover their life for a higher benefit without medical evidence than they would be willing to insure a higher-risk, older person.
The same is true for your state of health. Two people of the same age could apply for the same Life Insurance benefit but one might need medical evidence because they’ve ‘triggered’ the insurer’s criteria because of their medical history.
Again, the person with a health condition presents a higher risk to the insurer and the insurer may therefore require medical evidence to insure them even as they insure the healthy person for the same benefit based on the application alone.
In some cases, you will need a medical for Life Insurance, yes. This will depend on how much you’re looking to insure yourself for, how old you are and your existing state of health.
A full Life Insurance medical could involve a medical assessment by a doctor, which will be entirely paid for by the insurance company and done at your convenience.
They’re often held in private clinics around the country or alternatively you may be able to arrange someone to come to you. This will involve a full health MOT, including blood tests.
A less invasive medical may be a nurse’s screening, where a qualified nurse visits your home or place of work and does basic tests, such as your height, weight and blood pressure.
Sometimes, it may necessary for an insurer to write to your GP to collect your medical history. This could be especially likely if you’ve disclosed a pre-existing medical condition.
GP reports could be required on top of medical screenings – it all depends on you as an individual and what you disclose on your application.
It is possible to get Life Insurance with no medical screening, especially Whole of Life / Over 50s Life Insurance.
You may be able to get Life Insurance without a medical screening beyond the questions asked at application if you don’t trigger any of the insurer’s requirements for further medical evidence, such as a high benefit, older age, medical history, a combination of these or any other conditions that prompt the need for a medical.
Below is a high-level overview of the top 10 UK life insurers each with their own policy details and their own way of assessing medical history.
Aegon’s Scotland-based UK operations are wholly owned and operated by Dutch insurer Aegon N.V.
US insurance giant American International Group, Inc. (AIG) was first founded in 1919 and since then has grown to operate on a global scale. It provides a range of protection products for both individuals and businesses.
Aviva was founded in 1797, but the Aviva brand as it is today was formed in 2000 by the merger of Norwich Union and CGU PLC.
Guardian is a relaunched protection brand with a number of unique features to its policies.
L&G was formed as an insurance company for lawyers, by lawyers in 1836. It has since grown to become one of the country’s best-known financial services companies
LV is the UK’s largest friendly society, with more than 5.8 million customers, 1.1 million of whom are members.
Royal London previously operated Scottish Provident and Bright Grey as separated brands providing Critical Illness Insurance under the Royal London umbrella. From 2016, both were merged into the main Royal London brand.
Founded in 1812, Scottish Widows is today part of Lloyds Banking Group.
Vitality entered the UK market in 2007 with a joint venture with PruHealth and PruProtect, part of the Prudential Group. It has since bought out Prudential and is now branded solely as Vitality.
Zurich is a Swiss-based global insurance giant, operating in more than 170 countries. It employs around 55,000 employees worldwide, including 4,500 in the UK.
When there are so many different providers each with their own approach to setting up cover it can be tricky to know which one will be most suitable for your needs. We exist to help you make an informed decision and find the most cost-effective solution for your situation.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.
Not only are our advisers highly qualified to offer you Life Insurance advice, but arranging these policies day in, day out we know all the tips and tricks to pass on.
Taking advantage of our knowledge and expertise comes at no cost to you, so why not give us a call today on 02084327333 or email us at firstname.lastname@example.org.
Director at Drewberry
Great service. Cannot recommend highly enough.